07.01.202606:08:33UTC+00Copper Pulls Back From All-Time High

Copper futures declined to approximately $5.9 per pound on Wednesday, declining from their recent peak levels as part of a general downturn in the metals market, largely due to investors capitalizing on gains. This decline was further influenced by the strengthening of the US dollar, as financial markets anticipated a substantial influx of US economic reports that could potentially influence the Federal Reserve's policy decisions. Concurrently, China's central bank announced its intention to reduce the reserve requirement ratio and lower key interest rates this year to ensure sufficient liquidity and maintain a supportive monetary environment, which could bolster demand projections. Earlier in the week, copper prices had reached unprecedented highs due to escalating worries about the possibility of the Trump administration implementing new tariffs on refined metals. Such tariffs could redirect supplies to the US, leading to a supply constraint in key trading locations like London and Shanghai. Supporting these prices was a favorable global demand outlook, driven by investments in power grid enhancements, renewable energy projects, and the expansion of data center infrastructure.